Brownstone Ventures Inc.

Brownstone Ventures Inc.

November 28, 2007 12:58 ET

Brownstone Ventures Inc. Releases Unaudited Results for the Three Months Ended September 30, 2007

Quarterly Highlights: Enters into new oil and gas project in Argentina, discovers gas in Piceance Basin and continues to be well financed to further invest in oil & gas projects

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2007) - Brownstone Ventures Inc. (TSX VENTURE:BWN) today announced its unaudited results for the three months ended September 30, 2007.

As at September 30, 2007, the Company had cash and cash equivalents of $43.9 million as compared to $35.9 million as at June 30, 2007. Investments at fair value totaled $16.9 million at September 30 as compared to $24.9 million at June 30, 2007. Also at September 30, 2007, oil & gas properties and related expenditures totaled $17.5 million as compared to $16.3 million as at June 30, 2007.

Financial Highlights for the three months ending September 30, 2007
with comparatives:
Three Months Ended September 30,
Operating Results 2007 2006
Realized gains on disposal of
investments, net $ - $ 18,672,207
Unrealized gains (losses) on
investments, net 971,400 (13,460,266)
Net investment gains 971,400 5,211,941
Total expenses 1,055,334 3,077,122
Net income for the period 1,028,891 2,853,484
Basic earnings per common share 0.02 0.07
Diluted earnings per common share 0.02 0.07

Balance Sheet Highlights September 30, 2007 June 30, 2007
Cash and cash equivalents $ 43,949,049 $ 35,951,353
Investments, at fair value 16,967,160 24,902,453
Oil & gas properties and
related expenditures 17,490,349 16,333,500
Total assets 80,668,734 79,397,145
Total liabilities 3,410,288 3,778,613
Share capital, warrants and
contributed surplus 60,660,819 60,049,796
Retained earnings 16,597,627 15,568,736
Working Capital 57,849,986 57,332,027

There were no significant acquisitions during the three months ended September 30, 2007. The Company has spent approximately $1.15 million during the first quarter of fiscal 2008 on exploration expenditures through its partners.

Project Activities During the Quarter

Piceance Basin, Colorado and Uinta Basin, Utah

- During the Quarter, Brownstone announced that its operating partner had commenced drilling and released drill results from North Barcus Creek #1-12 and 2-12 wells. Gustavson Associates, Boulder Co. (Geologists - Engineers - Appraisers) conducted preliminary petrophysical analysis of the #1-12 and 2-12 well logs and reported an estimated 263 feet and 254 feet respectively, of potential net pay with average porosity of 10%. Throughout drill operations, the mud log showed strong evidence of reservoir gas. The operator is currently completing both wells.

Neuquen Basin, Argentina

- Brownstone entered into a Participation Agreement with Petrolifera Petroleum Limited (TSX:PDP) ("Petrolifera"), whereby Brownstone can earn a 25 percent interest in Petrolifera's 253,000 acre (approximately 1,025 square kilometers) Vaca Mahuida Block in the province of Rio Negro, Argentina.

Tuscano Basin, Brazil

- Subsequent to the end of the quarter, Brownstone entered into two farm-in agreements with BrazAlta Resources Corp. (TSX VENTURE:BRX) and W. Washington Empreendimentos E. Participacoes Ltda. to earn interests in Blocks 204, 219, 234 and Test Well Block 235 and Blocks, 94, 105, 115 and 116, each in the Reconcavo Basin, Brazil, subject to the terms and conditions outlined in the October 1, 2007 press release. These blocks are in addition to five blocks that were jointly awarded during Round 8 of the Brazilian Land Auctions in November 2006.

Brownstone is currently participating in five oil and gas exploration projects based in the United States (Colorado/Utah and Oregon), Argentina, Brazil and India.

"We are pleased with the progress of our exploration activities on our current projects," commented Sheldon Inwentash Chairman and CEO of Brownstone. "We continue to search for other compelling opportunities, are well funded to make additional investments in existing and new projects and look forward to the completion of our two wells in the Piceance/Uinta basin." About Brownstone - Brownstone Ventures Inc. ("Brownstone") is a Canadian based, energy-focused investment company with direct interests in oil and gas exploration projects, investments in oil and gas lands and other equity investments. For additional information, please see Brownstone's website:

Forward-Looking Statements:

Certain statements contained in this press release constitute forward-looking statements, which are statements relating to future events or the Company's future performance and which are inherently uncertain. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Company believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking statements contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in this press release include, but are not limited to: obtaining the necessary financing for operations, market fluctuations, investment performance, fluctuations in prices of commodities underlying our interests and equity investments, strength of the Canadian and US economy, foreign exchange fluctuations, political and economic conditions in the countries in which the Company's property interests are located and other risks included elsewhere in this press release under the heading "Risks" and in the Company's public disclosure documents filed with certain Canadian securities and available at

Readers are cautioned that the foregoing lists of factors are not exhaustive. Although the Company has attempted to identify important factors that could cause actual events and results to differ materially from those described in the forward-looking statements, there may be other factors that cause events or results to differ from those intended, anticipated or estimated. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law. All of the forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The TSX Venture Exchange does not take responsibility for the adequacy or accuracy of this release.

Contact Information

  • Investor Relations:
    Brownstone Ventures Inc.
    Sheldon Inwentash, President and C.E.O.
    (416) 941-8900
    Media Relations:
    Brownstone Ventures Inc.
    Wanda Cutler
    Director of Corporate Communications
    (416) 860-1717